House Committee on Judiciary (02/26/2010)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON JUDICIARY

Date:	02/26/2010	ATTENDANCE

Time:	01:48 PM to 04:05 PM	Court	X
		Gardner B.	X
Place:	HCR 0107	Kagan	X
		King S.	*
This Meeting was called to order by		Miklosi	X
	Representative Levy	Nikkel	*
		Pace	X
This Report was prepared by		Ryden	*
	Jessika Shipley	Waller	X
		McCann	*
		Levy	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB10-1104 HB10-1164 HB10-1346 HB10-1336 HB10-1246		Amended, Referred to Appropriations Witness Testimony and/or Committee Discussion Only Referred to the Committee of the Whole Referred to Appropriations Postponed Indefinitely

01:49 PM -- House Bill 10-1104

Representative Looper returned to finish the discussion of House Bill 10-1104, which began on Monday, February 8, 2010. She distributed prepared amendment L.011 (Attachment A).


BILL:	HB10-1104
TIME:	01:49:59 PM
MOVED:	Gardner B.
MOTION:	Adopt prepared amendment L.011 (Attachment A). Representative Looper explained the amendment. The motion passed without objection.
SECONDED:	Waller
		VOTE
	Court
	Gardner B.
	Kagan
	King S.
	Miklosi
	Nikkel	Excused
	Pace
	Ryden	Excused
	Waller
	McCann	Excused
	Levy
Not Final YES: 0 NO: 0 EXC: 3 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB10-1104
TIME:	01:52:19 PM
MOVED:	Court
MOTION:	Refer House Bill 10-1104, as amended, to the Committee on Appropriations. The motion passed on an 8-0 roll call vote, with 3 members excused.
SECONDED:	Gardner B.
		VOTE
	Court	Yes
	Gardner B.	Yes
	Kagan	Yes
	King S.	Yes
	Miklosi	Yes
	Nikkel	Excused
	Pace	Yes
	Ryden	Excused
	Waller	Yes
	McCann	Excused
	Levy	Yes
Final YES: 8 NO: 0 EXC: 3 ABS: 0 FINAL ACTION: PASS

01:53 PM -- House Bill 10-1164

Representative A. Kerr, prime sponsor, presented House Bill 10-1164 concerning service of process in actions concerning incidents that may be covered by a motor vehicle insurance policy. The bill requires an auto insurance policy contract to include a provision that appoints the insurance company as the agent of the insured for service of process (service) or other civil filing for which the insured can possibly claim coverage. This applies when the insured cannot be found. An injured party can receive payments under his or her uninsured motorist coverage regardless of whether the at-fault party is insured if:

• the alleged at-fault party cannot be located;
• the service on the insurance company is insufficient or ineffective;
• the accident report fails to disclose the name of the at-fault party's insurance company; or
• the insurance company is unknown.

Representative Kerr responded to questions from the committee.

02:00 PM -- Jon Sands, State Farm, spoke in opposition to the bill. Mr. Sands discussed an unworkable liability aspect of the bill. He expressed his opinion that the bill is not limited to individuals who intentionally absent themselves from the jurisdiction. He stated that the bill will create additional layers of litigation. He indicated that the bill will result in motor vehicle insurance policies becoming more expensive. Mr. Sands responded to questions from the committee.

02:18 PM -- Jeff Ruebel, Colorado Defense Lawyers' Association, spoke in opposition to the bill. Mr. Ruebel discussed the ethical rules of conduct for attorneys. He talked about the obligations of insurance companies to defend their insured. His concerns arise from the fact that the bill requires attorneys to defend clients who are unavailable for consultation, which creates a number of problems. Mr. Ruebel responded to numerous questions from the committee. The committee discussed Rule 4 of the Colorado Rules of Civil Procedure regarding process.

02:43 PM -- David Brougham, American Insurance Association, spoke in opposition to the bill. Mr. Brougham stated that he feels strongly about figuring out a way to limit the liability of an insurance company to the parameters of the insurance policy. He discussed the idea of capping the payments to an injured party under the provisions of the bill to the amount of the existing uninsured motorist coverage. He reiterated the concerns of previous witnesses about the difficulties in defending a client who is unavailable. He talked about the reasons a defendant might be absent from Colorado.

02:55 PM -- Jim Croshal, Colorado Trial Lawyers' Association, spoke in support of the bill. Mr. Croshal discussed the difficulties inherent in serving an individual who has disappeared. Such difficulties make it impossible for the party who was not at fault in an accident to access insurance benefits. He talked about the methods and procedures insurance companies have for remaining in contact with their insured clients. Plaintiffs' lawyers do not have the same kinds of resources. He expressed concerns with limiting the provisions of the bill to uninsured or underinsured motorist coverage. He addressed several questions and concerns that were raised by members of the committee and the opposition witnesses.

03:27 PM -- Ed Breece, representing himself, spoke in support of the bill

03:27 PM -- Michael Bucher, representing himself, spoke in support of the bill.

03:30 PM

The committee discussed the bill. Representative Levy announced that the bill would be laid over.

03:33 PM -- House Bill 10-1346

Representative Kagan introduced House Bill 10-1346. The bill extends the period that temporary and emergency rules adopted by the executive branch agencies remain in effect from 3 months to 120 days.


BILL:	HB10-1346
TIME:	03:33:36 PM
MOVED:	Kagan
MOTION:	Refer House Bill 10-1346 to the Committee of the Whole. The motion passed on an 8-0 roll call vote, with 3 members excused.
SECONDED:	King S.
		VOTE
	Court	Yes
	Gardner B.	Excused
	Kagan	Yes
	King S.	Yes
	Miklosi	Excused
	Nikkel	Yes
	Pace	Yes
	Ryden	Yes
	Waller	Excused
	McCann	Yes
	Levy	Yes
Final YES: 8 NO: 0 EXC: 3 ABS: 0 FINAL ACTION: PASS

03:34 PM -- House Bill 10-1336

Representative Schafer introduced House Bill 10-1336. The bill creates the School Safety Resource Center Cash Fund and allows the Department of Public Safety to solicit gifts, grants, and donations to pay for the costs of operating the School Safety Resource Center. The department is also authorized to charge a fee on attendees to offset the costs of any training programs or conferences that the center provides. She discussed the bill's fiscal note, and how many individuals are expected to attend the center's conferences and training programs.

03:38 PM -- Erick Scheminske, Department of Public Safety, testified in support of the bill. He spoke to the reasons why the department supports the bill and explained that the bill gives the department the authority to accept and expend gifts, grants, and donations.


BILL:	HB10-1336
TIME:	03:43:29 PM
MOVED:	Ryden
MOTION:	Refer House Bill 10-1336 to the Committee on Appropriations. The motion passed on an 11-0 roll call vote.
SECONDED:	Court
		VOTE
	Court	Yes
	Gardner B.	Yes
	Kagan	Yes
	King S.	Yes
	Miklosi	Yes
	Nikkel	Yes
	Pace	Yes
	Ryden	Yes
	Waller	Yes
	McCann	Yes
	Levy	Yes
Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

03:44 PM -- House Bill 10-1246

Representative Miklosi introduced House Bill 10-1246 and distributed two prepared amendments to the bill, L.002 and L.003 (Attachments B and C). The committee previously considered the bill on February 12, 2010. Representative Miklosi explained the amendments.


BILL:	HB10-1246
TIME:	03:46:12 PM
MOVED:	Miklosi
MOTION:	Adopt prepared amendment L.002 (Attachment B). The motion passed without objection.
SECONDED:	Court
		VOTE
	Court
	Gardner B.
	Kagan
	King S.
	Miklosi
	Nikkel
	Pace
	Ryden
	Waller
	McCann
	Levy
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

03:46 PM

The committee discussed prepared amendment L.003 and the liability imposed by the amendment and the bill.

03:59 PM

Jery Payne, Office of Legislative Legal Services, discussed the term "knowingly" and how it relates to the liability imposed by the amendment. Representative Miklosi responded to questions from committee members regarding the amendment.


BILL:	HB10-1246
TIME:	04:01:40 PM
MOVED:	Miklosi
MOTION:	Adopt prepared amendment L.003 (Attachment C). The motion was withdrawn.
SECONDED:	Court
		VOTE
	Court
	Gardner B.
	Kagan
	King S.
	Miklosi
	Nikkel
	Pace
	Ryden
	Waller
	McCann
	Levy
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Withdrawn


BILL:	HB10-1246
TIME:	04:03:56 PM
MOVED:	Miklosi
MOTION:	Postpone indefinitely House Bill 10-1246. The motion passed on an 11-0 roll call vote.
SECONDED:	Court
		VOTE
	Court	Yes
	Gardner B.	Yes
	Kagan	Yes
	King S.	Yes
	Miklosi	Yes
	Nikkel	Yes
	Pace	Yes
	Ryden	Yes
	Waller	Yes
	McCann	Yes
	Levy	Yes
Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

04:05 PM

The committee adjourned.